Peloton Interactive and Flywheel Sports have settled a legal dispute over alleged technology theft and patent infringement.
The Verdict
- Flywheel acknowledged that it copied Peloton’s leaderboard technology and will pull the technology from its bikes within 60 days.
- Flywheel also agreed to drop its legal challenge to Peloton’s patents.
Why it matters: As the connected fitness wars intensify, this news helps to cement Peloton’s lead on a few fronts.
First, the company is sending a signal to its competitors: “if you’re infringing on our technology, we’ll see you in court.” With this win, they have a clear upper hand. Next, the leaderboard technology in question plays a pivotal role in Peloton’s ability to engage its users, contributing to a network effect, fostering an online community, and keeping members coming back for more. Protecting it is a must.
Finally, the victory appears to validate Peloton’s claim that, beyond manufacturing fitness equipment, they are, in fact, a tech company. Whether or not that’s enough to justify or sustain their multi-billion-dollar valuation remains to be seen.
